The company has reduced the production of iron ore in Kryvyi Rih by 25% from 2022
Mining company Rudomine has cut iron ore production in Kryvyi Rih by 25% since 2022. During the current year, production was maintained at 50% of the maximum production capacity, which corresponds to a zero break-even level. This was reported by Interfax-Ukraine with reference to the company’s information.
Since 2022, there has been a noticeable decline in sales, which has led to a decrease in production by up to 75% compared to the pre-war period.
In 2024, the company plans to increase sales due to the use of repair and renovation funds for equipment and technologies. The failure to create these funds this year may become a problem next year. Rudomine is also actively working on plans to increase automation of production processes to reduce production costs.
Rudomine’s products are sold in neighboring countries, mainly in Poland and Slovakia. Historically, sales have been made exclusively by rail, which has helped to avoid problems with maritime logistics.
The number of employees decreased from 1,250 to 950 due to mobilization in Ukraine. The company replenishes its staff only when necessary, including the integration of women into traditionally male professions.
Rudomain also noted the general economic slowdown in Europe.
«Entering new markets requires a significant increase in the global value of products to cover logistics costs and unblock seaports. The key factors for improving the investment climate are the end of the war, the return of specialists to their workplaces, and the restoration of trust in the state,» the company said in its response.
As GMK Center reported earlier, Rudomine in 2022 paid UAH 500 million in taxes. During the year, the company transferred UAH 330 million to the state budget, and UAH 170 million to the city budget.
Mining company Rudomine LLC was registered in May 2010. The enterprise is engaged in the extraction of iron ore and operates on the markets of Ukraine, the CIS and Europe.